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Property Rights without Transfer Rights: A Study of Indian Land Allotment

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  • Christian Dippel
  • Dustin Frye
  • Bryan Leonard

Abstract

Governments often place restrictions on the transferability of property rights to protect property owners from making “mistakes” such as selling their property under value. However, these restrictions entail costs: they reduce the property’s value as collateral in credit markets, limit owners’ ability and incentives to invest in the land, and create various transaction costs that constrain optimal land use. We investigate these costs over the long run, using a natural experiment whereby millions of acres of reservation lands were allotted to Native American households under differing land-titles between 1887–1934. We compare non-transferable land plots to neighboring plots held with full property rights, using fine-grained satellite imagery to study differences in land development and agricultural activity from 1974–today.

Suggested Citation

  • Christian Dippel & Dustin Frye & Bryan Leonard, 2020. "Property Rights without Transfer Rights: A Study of Indian Land Allotment," NBER Working Papers 27479, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27479
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    1. repec:ags:aaea22:335473 is not listed on IDEAS
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    3. Alston, Eric & Crepelle, Adam & Law, Wilson & Murtazashvili, Ilia, 2021. "The chronic uncertainty of American Indian property rights," Journal of Institutional Economics, Cambridge University Press, vol. 17(3), pages 473-488, June.
    4. Deininger,Klaus W. & Ali,Daniel Ayalew, 2022. "How Urban Land Titling and Registry Reform Affect Land and Credit Markets : Evidencefrom Lesotho," Policy Research Working Paper Series 10043, The World Bank.
    5. Johannes W. Ligtenberg & Tiemen Woutersen, 2024. "Multidimensional clustering in judge designs," Papers 2406.09473, arXiv.org.
    6. Christian Dippel & Dustin Frye & Bryan Leonard, 2024. "Bureaucratic discretion in policy implementation: evidence from the Allotment Era," Public Choice, Springer, vol. 199(3), pages 193-211, June.
    7. Ennio E. Piano & Louis Rouanet, 2024. "The calculus of american indian consent: the law and economics of tribal constitutions," Public Choice, Springer, vol. 199(3), pages 341-366, June.

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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • N51 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: Pre-1913
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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